Do You Hold US Assets?

If you hold assets in the USA, you should be aware of an issue that has started to arise in estates in which there are US shareholdings, especially where these are managed by brokers in the US.

The US Internal Revenue Service (IRS) requires that any estate with US assets files an Estate Tax return, following which it will issue a certificate to give clearance for the estate assets to be released. Normally, this procedure, although often lengthy, is straightforward.

Recently, however, instances have been reported where brokers holding shares have demanded that estates register with the IRS as if they were financial institutions, in order to comply with the US Foreign Account Tax Compliance Act. This is a much more onerous administrative burden.

If your estate includes foreign assets (including properties), this can add to the complexity of its administration, the tax issues involved and, where there is a compulsory inheritance regime in force, inheritance issues.

The contents of this article are intended for general information purposes only and shall not be deemed to be, or constitute legal advice. We cannot accept responsibility for any loss as a result of acts or omissions taken in respect of this article.

News

Glanvilles are proud to have supported the Great Legal Bake Day on 13th February 2018, in aid of the Sussex Legal Services charity. Over our three offices based in Chichester, West Sussex, and Fareham and Havant, Hampshire, we...

News

Failing to pay taxes due because of insufficiency of funds with which to do so has repeatedly been challenged by HM Revenue and Customs (HMRC) when a defaulting taxpayer has sought to claim it is a 'reasonable excuse' for non-payment. Where such an excuse...

news

One of the issues that proves difficult for executors of deceased persons who have Individual Savings Accounts (ISAs) is that the interest on them is taxable once the owner has died. Many of these accounts are small and, given that interest rates have been...